U.S. Treasuries fell on Friday as positive comments from German officials about Greece winning an elusive rescue package encouraged selling of safe-haven U.S. government debt.Prices of benchmark 10-year notes were down 9/32, their yields rising to 2.01 percent

U.S. Stocks hit a six-and-half-month peak and the euro rallied on Friday as hopes that Greece will seal a long-awaited bailout deal next week fuelled risk appetite.

The Dow Jones industrial average was up 24.83 points, or 0.19%, at 12,928.91, while the Standard & Poor's 500 Index gained 2.15 points, or 0.16%, at 1,360.19. But the Nasdaq Composite Index was down 3.47 points, or 0.12%, at 2,956.38.

Asian shares rebounded on Friday, as sentiment turned positive on firmer signs euro zone officials would soon approve a long-awaited bailout for Greece to reduce the risk of a disorderly default, while solid U.S. economic data also lent support.

Benchmark 10-year notes were last down 19/32 in price to yield 2 percent, up from 1.93 percent late on Wednesday. The yields have traded within a range from around 2.05 pecent and 1.80 percent for the last two months.

In the previous session U.S. crude closed at $102.31, gaining 51 cents, the highest settlement since the Jan. 4 settlement at $103.22. It hit a session high of $102.69, the highest since Jan. 12's peak of $102.98.

The US markets rallied with the Dow and the Nasdaq hitting multi-year highs. Robust economic data and reports suggesting that the ECB would agree to exchange their Greek bonds for new ones boosted sentiment.